Creating a Hobby Business: An emerging trend in 2021
Creating a Hobby Business. Sounds interesting doesn’t it?
In this episode we cover a number of things to consider before turning your hobby into a business.
Could you turn your hobby into a business?
Maybe you love creating metal sculptures in your downtime, and you think you might be able to start a business selling your creations. Or, perhaps you love to make things out of wood in your spare time.
Perhaps you love cooking and have an old family recipe for a delicious dish you could sell online.
Maybe you paint or make ceramics. Or maybe designing computer games is your thing. Perhaps you have an eye for fashion and love making your own clothes. The list is endless.
Any of these passions can be turned into a hobby business, if you know how!
Times have changed
In 2020, millions of people around the world have lost their jobs. Some of them may never return.
Hundreds of thousands of businesses have succumbed.
Economies have been smashed and no matter which way you turn, life has changed and at the very least is going to take years to recover.
If you have lost your income because of COVID should you start a hobby business?
The answer – it depends!
Many of the ideas we talk about in relation to starting any business, also apply to a hobby business.
So, it comes down to doing a thorough preparation as you attempt to answer that question for yourself.
We human beings have a long history of doing things when our livelihoods are threatened. We tend to get resourceful and creative and think our way out of the situation?
Historically, one of the key ways that we have gone about that is by starting businesses.
One of the most accessible of all business ideas is commercialising something that you already love and are good at.
And, of course, on paper that sounds like an easy leap to make and in many respects it can be.
But – and you knew there would be a ‘but’ -there is a bit more to it than that.
Is the time now to turn your hobby into a business?
Well, there has never been an easier point in history to start a business.
We can now do so many of the necessary steps online, such as:
- register business names
- incorporate companies
- set up domains
- build websites
- start marketing
- sell online
All of these can be done from the comfort of your own home.
The timing of your decision to give it a go, however, will be dependent on many factors.
Go through the resources on this site and you will soon have an understanding of whether the time may be right for you.
Of course, after considering whether now is the best time to start, other questions will emerge.
Key amongst them is what you want or need this business to do for you and your family.
What size do you want your hobby business to be?
- Part-time – earn a few dollars on the side
- Full-time – completely replace the income from your job
- Big enough to make a fortune
Your motivation is very personal, and may not be related to money at all. We all have our motivations.
The scale of your motivation and ambition is important as:
the bigger your ambition,
then the bigger the challenge,
and the bigger the resources you might need and
the bigger the risk.
In any business, there are always risks involved. (How To Reduce Your Risk When Starting A Business)
do you need to invest personal funds, buy better equipment (for example the difference between domestic DIY grade and commercial grade tools for instance)
Your time –
to get a new business off the ground is going to take a lot of time. Takes time away from trying to find a job, spending quality time with family, investing time in your health
Losing your passion –
Perhaps the biggest risk of all is losing your hobby or the thing that you are passionate about. Have you considered that spending a handful of hours each week might be the perfect amount of time for you to invest in your passion but spending 40 or 50 hours per week may rob you of the enjoyment you get?
Listen to Geoff’s experience about his passion about Guitars and how becoming a guitar teacher made him resentful.
Are you ready for the “pressure of the customer”?
The thing that I’ve encountered most when working with someone who turned their hobby into a business, especially a Full Time business, is they underestimate the pressure of the customer.
- Dealing with faults or warranty issues and potential legal issues that could arise around product safety etc
- Unrealistic customer expectations
- Customer returns
How customer expectation can kill your home based business.
The information contained in this podcast is general and does not take into account your situation. The content does not constitute business, legal or financial advice and should not be used as such. You should consider whether the information is appropriate to your needs, and where applicable, seek professional advice from a business adviser, financial adviser or lawyer in your jurisdiction. To find out more, please go to www.ShouldIOwnABusiness.com.